Following Reliance MediaWorks' open offer to buy 52.48% stake, another ADA group company has increased its stake in Fame India to 12.14% from 6%

Reliance Capital Partners has hiked its stake to 12.14% in Fame India, a day after another Anil Dhirubhai Ambani Group (ADAG) company Reliance MediaWorks announced an open offer for a majority stake in the theatre chain, reports PTI.

Fame India in a disclosure to the National Stock Exchange (NSE) on Monday said that Reliance Capital Partners has acquired 21.28 lakh shares, representing 6.12% stake, in Fame between 6th and 19th February 2010.

Pursuant to the purchase, Reliance Capital Partners' stake in Fame India has increased to 12.14%, up from 6.02% earlier.

Yesterday, ADAG company Reliance MediaWorks announced an open offer to acquire 2.16 crore shares, or 52.48% stake, in Fame at Rs83.40 per share, countering an existing takeover bid by rival Inox Leisure.

Inox Leisure had recently signed an agreement to acquire 43.28% promoters' stake in Fame India for Rs66.48 crore and earlier this month made an open offer to buy another 20% stake at Rs51 per share.

Reliance MediaWorks had said that it would seek action against Fame for selling promoters' stake in the theatre chain to Inox at a price much lower than it had offered earlier. If the open offer gets fully subscribed, ADAG will hold 64.64% stake in Fame India.

DoT will issue a notice inviting applications from potential bidders by the end of this week and all pending issues have been resolved, the telecom minister has said

The government is all set to start the process of auctioning of spectrum for 3G mobile services as all issues with the law and the finance ministries have been resolved, telecom minister A Raja said on Monday, reports PTI.

"The Department of Telecom (DoT) will issue Notice Inviting Applications (NIA) from the potential bidders by the end of this week. All pending issues have been resolved," Mr Raja said at the sidelines of a function in New Delhi.

Asked about the date for auction of spectrum, he said, "You can take 40-45 days from the date of issuing NIA."

Going by this, the auction cannot be completed within the current financial year with only 36 days remaining.

The law ministry had earlier objected to a clause in the draft NIA that successful bidders may ask for compensation in case they were not allotted spectrum within the stipulated time period. On the issue of the number of slots to be auctioned, sources said that three slots would be auctioned across the nation, but in some states the government may decide to allow four private players.

The government had earmarked Rs35,000 crore of proceeds from the sale of spectrum in the current financial year, but due to uncertainty over the number of slots and compensation clause, which has been resolved now, the auction is likely to be delayed.

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